College Football's Big-Money, Big-Risk Model

12/10/2012 10:00AM

The story of college sports in 2012 is that of an arranged marriage between two increasingly anxious kingdoms: the largest universities and TV networks. Rachel Bachman reports on the $25.5 billion investment TV is making. Photo: AP Images.

This transcript has been automatically generated and may not be 100% accurate.

... the the ... actual mobile means no problems or college football ... Rachel Bachman was a terrific story in today's paper explaining how the flaw the money into ... football and confident to go up ... is a magic convenience between the universities and TV any CIA ... to explain what that means a chill well congratulations thank you my story very interesting piece owing to price your soul ... the numbers the spider right twenty fourteen billion dollars being pumped by TV networks the way the next fifteen years in college football ... and then of course when money is in bold bet he scored seemed cute structure changes in the game itself right yes yes and so how's the top eight universities and everything else around the college football ... well course the backdrop of this is that state and local funding for higher education has been in decline for decades ... and so those are real need critically on that college athletics site ... for on those other parties to find alternate sources of revenue ... and Dom meanwhile there's this parallel trend in television history in which people are turning up for sat sun there watching things later on DVR and Netflix is the one ... on the one exception being premium live sports ... and college football now is the second most popular sport in this country ... the high-end ID NFL titan baseball practice become less for pop in recent years and cable TV ... network stock Apple asanas popularity the pain these huge pieces sold and the good days for the TV networks is if you if you have caused when you will not cut off the court grants the state ... cut off the cord and it was that one thank you DVR ... a coach will get people just gonna watch it live that's a good question exactly you want able to watch it while your friends are watching your baby or old classmates from school things like that ... of nobody was watching game was out of Commons are even decided to and so this is one of the rare things that people will actually drop what they're doing and watch and of course the cable networks know this and the place ... of very high premium on this concept to lose money though is going to their coaches can take is a company that plans ... when he is patient data plans as sole ... Hadley's economics working here because this'll all the money sloshing around with millions and millions and back the top paid coaches in college football now make picks in excess of five million dollars a year which in some cases is more than that much more than ever see Chancellor presidents ... so aam certainly it's going into their pockets summits going into very posh facilities ... in some cases and in in some cases it's actually going to buy out coaches ... because since these in overseas have more cash ... they're getting less for patients but coaches who don't when a man might give them only two years were once again been three or four years to win and ... that to me we talked about the TV networks kind of hanging onto view is this wave and began to read to them from ... the sea investment into sole advertising revenues in everthing else ... to advertisers love this content and how they absent lot of football to very attractive demographic of young educated ... on this it has a very strong affinity for for the product for college football lot of people read some of these teens ... from birth ... and so right now that the market is very robust aam but of course the content has increased because one of things these numbers have done it at this and ... how we won that game joined at a conference championship game or on the case of the twenty fourteen season ... crash of an atom of a playoff for the first time ever ... so that you know that the iam ... the total content is expanding at of course about the danger there of over saturation ... um or certainly the market just keep on getting through inflated that it's it's untenable so this is like it that we about to get into appeared now we know that the agency's usual we can have ... more balls than my IIa grandmother's kitchen right is gonna be likeable everyday I ... know he doesn't expect inflation to rear ... yet it is the buyer confidence and gasoline bombs column polls are now all we're doing is adding on you know the this extra layer of play now with certain in twenty fourteen which which of them will be very popular but ... the risk is that these now paying so much for this content ... on the aviation hope that the current cable model survives no the monthly subscription model and people don't get frustrated with these very iam tight cable bills ... and try to get their Sportsnet away or simply throw their hands and and to watch them anymore pretty high Street turns into a big risks on both sides well thanks so much as a great piece Reppert us thank you so much again Rachel and